Berau Coal restructures US$40 million in debt
Monday, April 3 2000 - 04:00 AM WIB
Publicly listed heavy equipment distributor PT United Tractors said its coal mining subsidiary PT Berau Coal had signed an agreement with its creditors on the restructuring of a debt worth US$40 million, The Jakarta Post reported.
The company said the debt restructuring agreement was signed last Wednesday in Singapore.
The $40 million loan was provided by a bank consortium -- including the Singapore branches of Sakura Bank Ltd, Dai Ichi Kang Yo Bank, Fuji Bank, Sanwa Bank, Nippon Credit and the Tokyo branch of Bank of Taiwan -- in 1996 and expires in 2001.
The money had been used by Berau Coal to build infrastructures and facilities at its coalmines in Lati and Binungan in Kalimantan.
Under the agreement, the repayment of the loan will be extended to 2004, but Berau Coal will pay the interest on the loans every three months and the loan's principal every six months. Berau Coal also agreed to delay the repayment of debts owed to shareholders until it paid back all its debts to the creditors. (*)